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UK shares: this is why the Vistry Group share price is exploding today!

first_img See all posts by Royston Wild Simply click below to discover how you can take advantage of this. UK shares: this is why the Vistry Group share price is exploding today! Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares Royston Wild owns shares of Taylor Wimpey. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Royston Wild | Wednesday, 9th December, 2020 | More on: TW VTY Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! In a recent article I explained why Britain’s housing crisis bodes well for UK shares like FTSE 100-quoted Taylor Wimpey (LSE: TW).Weak construction rates in response to soaring homes demand has caused property prices to explode during the past decade. And it looks like the shortfall in housing availability has been worsened by the Covid-19 crisis.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Official data shows that the number of homes starts in England slumped 38% year on year between April 1 and September 30 as Covid-19 lockdowns bit. This was the lowest number of starts for seven years.Another terrific trading update!All this bodes well for construction-focused UK shares over the short-to-medium term at least. And it feeds through to predictions that, despite the economic downturn, property prices will remain strong in 2021. Take property services provider Jackson-Stops for example. It reckons that low stock levels will help average home prices edge at least 2% higher next year. It predicts that they will rise between 3% and 4% should the recent Stamp Duty holiday be extended beyond the spring.It’s no wonder, then, that many City analysts reckon profits at many London-quoted homebuilders. The forecasts for Vistry Group (LSE: VTY) is a perfect example of this. Broker consensus suggests that annual earnings here will climb 122% during 2021. And fresh commentary from the FTSE 250 firm today illustrates why the number crunchers are so upbeat.Vistry declared in November that profits in 2020 would hit the upper end of its expectations (at £130m to £140m). And it built on this recent good news with fresh trading details released on Wednesday. The UK share was trading more than 6% higher from Tuesday’s close as a result.Vistry said that it expects to have net debt of no more than £40m at the end of December. It even touted the possibility of having a small net cash position at the close of 2020.The company said that “this has been driven by continued strong trading and low cancellations, good cash management at an individual business level, and the ongoing benefits from the successful combination and integration of the enlarged business.” Vistry was created following the acquisition of Linden Homes by Bovis Homes a year ago.UK share resurrects dividends for 2020The news bodes particularly well for income-hungry UK share investors. Vistry said last month that it intended to resume dividend payments next November with an interim dividend for 2021. Resilient trading since then means the builder now plans to accelerate these plans and to pay a “modest” final dividend for 2020.City analysts reckon Vistry will pay a total 35.5p per share dividend next year. This yields a chunky 3.9%. However, one can expect broker estimates to receive a sizeable shot in the arm following today’s news. No wonder its price has soared in value on Wednesday, then. I reckon this UK share is a brilliant pick today and I’d buy it. And a low price-to-earnings (P/E) ratio of 8 times for 2021 sweetens its appeal. Image source: Getty Images. last_img

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